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Question Help Consider the following information: Demand rate (D) = 1,500 units per hour Lead time (T) = 7 hours Container ca
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Answer #1

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(a)

N = DT(1+X) / C = [1500*7(1+0.2)] / 220 = 630 / 11 = 57.27 = 57

(b)

NC/ D = 57.27*220 / 1500 = 8.3996 = 8.4

(c)

Removing the safety factor

N = [1500*7(1+0)] / 220 = 525 / 11 = 47.72 = 48

Hours worth of demand = 48*220 / 1500 = 176 / 25 = 7.04 = 7

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